Top Headlines

Euro Testing Three-Year Highs in Buoyant Start to 2018 – Financial Times (subscription)

The opening trading hours of 2018 are proving to be very rosy for the euro, which is tickling a three-year high at $1.2079.

Dollar Begins Year on Back Foot as Euro Shines – Reuters

The euro climbed to a four-month high against a broadly weaker dollar on the first trading day of 2018, on optimism over a brightening economic picture in the euro zone.

Sterling Hits Three-Month High Ahead of Manufacturing PMI – Reuters

Sterling kicked off the first trading day of 2018 by climbing to a three-month high against the dollar as the greenback weakened broadly, ahead of a survey of Britain’s manufacturing sector.

Europe Begins Countdown to Mifid II – Financial Times (subscription)

Sweeping changes to EU rules on financial instruments come into force on January 3.

Bitcoin Recovers Some Losses After Its Worst Week Since 2013 – Reuters

Bitcoin rose 15 percent, recouping about half of the losses it sustained last week, its worst since 2013, as investors who had missed out on earlier rallies bought the world’s biggest and best-known digital currency.

Ripple Cryptocurrency Surges as Japanese Groups Agree to Use It – Financial Times (subscription)

Ripple has passed Ethereum to become the world’s second most valuable cryptocurrency by market capitalisation after the California-based cross-border payments company enjoyed an end-of-year jump in its market price.

The Final Irrational of 2017: Person of the Year – Profit & Loss (subscription)

All I can say then to my anonymous recipient is “thank you” on behalf of all of us in FX who believe in doing the right thing – hopefully in the Global Code era, this type of behaviour will become the norm.

2017: A Year Currency Investors Might Want to Put Behind Them – Financial Times (subscription)

Low volatility and declining volumes defined a year where Trump failed to lift dollar.

Regulatory News

Regulatory Penalties Triple to Combat Bad Behaviour – Financial News

Fines levied by financial services regulators for industry misconduct have risen threefold since 2016, according to data compiled by regtech firm Corlytics.

Who Regulates Bitcoin Trading? No US Agency Has Jurisdiction – Wall Street Journal (subscription)

Investors are frantically trying to learn everything they can about bitcoin – and so are regulators.

South Korea to Impose New Curbs on Cryptocurrency Trading – Reuters

South Korea’s government said it will impose additional measures to regulate speculation in cryptocurrency trading within the country.

Company News

Platform Volumes Decline in December – But Not By Much – Profit & Loss

The first three FX trading platforms to report average daily volume (ADV) data for December indicate that while activity declined, as usual in this month, generally markets remained busier than usual.

Bloomberg Commits to FX Global Code – Profit & Loss

Bloomberg has signed a statement of commitment to the FX Global Code, pledging it will continue to support fair and robust FX markets worldwide.

Integral Granted MTF Status – Profit & Loss

Integral Development Corp has received approval from the UK’s Financial Conduct Authority (FCA) to operate a multilateral trading facility.

Scott and Danino-Lewis Join CLS – Profit & Loss

CLS has made two senior appointments to its product development and sales teams.

Market Savvy

China Bulls Out in Force as Stocks, Yuan Start Year with Gains – Bloomberg

Chinese financial markets started the new year in celebratory mode, with the MSCI China Index extending a 12-month rally and the yuan climbing to its strongest in almost four months.

Mexican Peso Sinks to Nine-Month Low as Tax Reform, New Scandal Rattle – Financial Times (subscription)

After rallying as much as 20 per cent from the record low of nearly 22 per dollar reached in January, the peso is back on the ropes as a confluence of factors – including US tax reforms, a new corruption scandal and fresh signs of inflationary pressure – rattle investor sentiment once again.

Rupiah Range Shrinks to 20-Year Low as Authorities Stifle Trade – Bloomberg

While volatility in many financial markets has been rising over recent weeks, one notoriously unpredictable currency has been dead in the water.